Capitalising software development costs is not that unusal. Look at RDY - they capitalise a huge part of their expenses as capital.
And companies are required to amortise those costs over time. If they were capitalising $30M of costs on $30M of EBITDA, that would start to look spurious, but they are not. ($15M against $21M of EBITDA).
As for your concerns around 'decent cashflow' the 2022 financial result delivered $7M of operating cashflow.... that seems reasonable.
Capitalising software development costs is not that unusal. Look...
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53.5¢ |
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Mkt cap ! $60.61M | |||
| Open | High | Low | Value | Volume |
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| Last trade - 15.19pm 31/07/2025 (20 minute delay) ? |
| RKN (ASX) Chart |